<
Welcome!
Linking of AADHAAR with PAN is MANDATORY

Linking of AADHAAR with PAN is MANDATORY

Every person who has been allotted a Permanent Account Number (PAN) and is eligible to obtain Aadhaar number, must link their PAN with Aadhaar as per provisions of Section 139 AA of the Income Tax Act 1961. Further non linking of PAN with Aadhaar shall make PAN “inoperative" and 

  • TDS / TCS would be deducted /collected at Non PAN rate (including cash withdrawal) , 
  • Form 15G/H with inoperative PAN will not acceptable 
  • Existing Form 15 G / H becomes ineffective till PAN remains inoperative.
  • As per NSDL / CDSL guidelines, Demat account opening & transactions processing will be restricted for inoperative PAN.
  • As per extant RBI guidelines investment in RBI Bonds is not allowed for inoperative PAN.
  • As per extant RBI guidelines investment in Sovereign Gold Bonds is not allowed for inoperative PAN.
  • As per SEBI guidelines, ISA account opening and transactions processing will be restricted for inoperative PAN.


Here are two useful links for you:


Click here to check the status of your PAN – Aadhaar linkage:


Click here to link your Aadhaar with PAN.


Please note; linking of Aadhaar with PAN does not apply to an individual who does not possess an Aadhaar number / Enrollment ID and is:-

  • residing in the States of Assam, Jammu and Kashmir and Meghalaya.
  • a Non-Resident as per Income Tax Act 1961.
  • of the age of eighty years or more at any time during the previous year.
  • not a citizen of India.

It is as per notification 37/2017 dated 11-May-2017 issued by CBDT.


For queries, please contact your relationship manager or the nearest HDFC Bank branch.


Please ignore, if you have already linked your Aadhaar with PAN.

FAQs

1. What is PAN – Aadhaar Linking (Seeding)?

As per Section 139 AA of the Income Tax Act 1961, every individual including Non-Resident Indians (holding PAN & Aadhaar number) is required to link their PAN with Aadhaar by 30/06/2023.


2. What happens if PAN is not linked to Aadhaar by 30/06/2023? 

a. Not linking PAN with Aadhaar would lead to the PAN being mapped as "Inoperative PAN" at NSDL w.e.f 1st July 2023. Customer cannot give Form 60

b. Impacts customer with higher TDS / TCS rates

c. No waiver marking for Form 15 G/H if PAN is Inoperative

NSDL status of PAN must be "Valid and existing .i.e. Operative" for transactions to be allowed in customers account.


3. Can New customers open Account with the Bank if PAN is inoperative (not linked to Aadhaar)?

New customers can open account if the PAN status is inoperative. In case of Authorised signatory’s’ PAN being inoperative, the same shall have no impact in Authorised signatory capacity .


4. Will Inoperative PAN impact Cash withdrawal by the customers?

Customer with Inoperative PAN shall be liable to higher TDS rate on cash withdrawal transactions. 


5. What happens if individual Customer does not have PAN?

The customer may be allowed to open Account basis Form 60 as per the extant guidelines. Subsequently after obtaining PAN, customer should map same with Aadhaar (as available)


6. What about existing customers whose account has been opened with Form 60?

PAN – Aadhaar linkage would not be applicable to existing customers whose accounts have been opened based on Form 60. The same would be continued till they obtain PAN and consequently link it with Aadhaar.


7. What about the status of NRI / PIO customers?

PAN Aadhaar linkage would be applicable for NRI / PIO customer who hold both PAN and Aadhaar. The NRI / PIO customer should update his / her residential status correctly with Income tax Department of India. If NRI / PIO customer does not hold an Aadhaar yet the PAN is made Inoperative by the Income tax Department, then bank will be construed to consider the NRI / PIO PAN inoperative on Bank record. The NRI / PIO customer will have to consult his /her Tax consultant in India to update his / her residential status on Income Tax Portal and make his / her PAN Operative.


8. When is the PAN- Aadhaar linking not Compulsory?

Linking of PAN with Aadhaar is applicable to non-individuals. For cases which are flagged as exempt / NA by NSDL output are to be read as Operative Pan.


9. What about DTAA customers?

Inoperative PAN is does not impact the TDS rate for DTAA customers when they have given the declaration in a specified format which contains mobile number, address, email .


10. What is the impact of Inoperative PAN on Mutual Funds?

a. No new ISA registrations can be done for customers with Inoperative PAN 


11. What about TCS & TDS deductions?

TCS and TDS to be collected at No Pan rate.


12. How will Sikkim & NE Customers be affected by Inoperative PAN?

Sikkim & NE Customers with Inoperative PAN will be charged at higher rates i.e. @20%. It need to be noted that the exemption from TDS will be available to NE Sates and Sikkim customers even when the PAN is inoperative.

Please find below the details of implications of PAN- Aadhaar Linkage for ready reference 

Details

Allowed for Operative PAN

Not allowed for Inoperative PAN from 1 July 2023

Demat account opening and transactions

Allowed for operative Pan

As per NSDL / CDSL guidelines, Demat account opening & transactions processing will be restricted for inoperative PAN

RBI Bonds sale

Allowed for operative Pan

As per extant RBI guidelines investment in RBI Bonds is not allowed for inoperative PAN

Application for Sovereign Gold Bonds

Allowed for operative Pan

As per extant RBI guidelines investment in Sovereign Gold Bonds is not allowed for inoperative PAN

Third Party Products - Mutual Funds

Allowed for operative Pan

As per SEBI guidelines, ISA account opening and transactions processing will be restricted for inoperative Pan

Tax perspective

ITR compliance for cash withdrawal to continue.

Customer cannot give Form 15 G /H. Existing Form 15 G / H becomes ineffective and Form 15 G/H becomes effective when Pan turns operative during Financial Year.

Account level waiver for cash withdrawal to continue.

Higher TDS rate on cash withdrawal transactions.

Lower or nil tax of TDS to continue till certificate is in force

TDS and TCS to be collected at No Pan rate

All other transactions of Account opening, Credit / Debit Cards issuance, Cash Transactions, RD/FD/Tax Saving FD etc.

Allowed for operative Pan

Allowed for inoperative Pan


A.  How to link PAN with Aadhaar through e-Filing Website

1.  Visit the Income Tax e-Filing website and click on the 'Link Aadhaar' option under the quick links.
2.    Enter your PAN and Aadhaar number.
3.    Enter the name as mentioned in your Aadhaar card.
4.    In case the date of birth is mentioned on your Aadhaar card you have to tick the box
5.     Tick mark ‘I agree to validate my Aadhaar details with UIDAI’
6.   Click on the ‘Link Aadhaar’ button
7.     Next, enter the OTP that you receive on your mobile number and click on ‘Validate’
 8.     A pop-up message will appear showing your successfully linked Aadhaar with PAN Card
 9.     Customer can check the PAN – Aadhaar linkage status on NSDL site after at least 24 hours

B.  Below are the steps to check the Status of Pan Card Seeding with Aadhaar

1.  Visit www.incometaxindiaefiling.gov.in/aadhaarstatus.
2.   Enter PAN and Aadhaar Number.
3.   Click on 'View Link Aadhaar Status'
4.   The status of the linking is displayed in the next screen

C.  Important Links that can be shared with Customers:

  a. PAN - Aadhaar Linking status
  
    https://eportal.incometax.gov.in/iec/foservices/#/pre-login/link-aadhaar-status

   b. Link PAN - Aadhaar using OTP
    
​​​​​​​     https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar

   c. Link PAN - Aadhaar Post Income Tax Portal Login​​​           

     https://eportal.incometax.gov.in/iec/foservices/#/login

View Less